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The number of companies poised to be upgraded from junk to investment grade status has more than tripled from a year ago, according to Standard & Poor's Ratings Services.

Bondholders experience a capital gain if their holdings are upgraded, and for issuers, the cost of capital decreases significantly once they move into investment grade territory.

As at May 11 there were 23 rated entities globally, representing $35.9bn (€28bn) that could be potentially upgraded into to investment grade, compared to seven one year ago.

Diane Vazza, head of S&P's global fixed income research group, said: "Rising stars still outpace fallen angels globally, though the gap is narrower than in 2005, when the number of rising stars exceeded that of fallen angels by the biggest margin since 1997."

In terms of rated debt outstanding, the oil and gas exploration and production sector was the most prominently placed for the highest amount of debt affected by potential upgrades, followed by forest products and building materials, transportation, and diversified.

Based on rated debt volume, Allegheny Energy, a US based diversified energy company, was the largest issuer potentially poised to ascend to investment grade.

Other companies that could potentially be upgraded include British Airways, Russian industrial conglomerate Gazprom, and the Bank of India.

So far this year 15 entities have moved up to investment grade from junk affecting rated debt worth $21.3bn.